diff --git a/.env.example b/.env.example
index e0dbae73..8ff04b35 100644
--- a/.env.example
+++ b/.env.example
@@ -5,9 +5,12 @@ UPSTREAM_API_KEY=your-upstream-api-key
 # Tinfoil (confidential inference enclaves, EHBP)
 # TINFOIL_API_KEY=your-tinfoil-api-key
 
-# Secret key used to encrypt secrets at rest (REQUIRED). The node refuses to
-# start without it. Generate one with:
-#   python -c "from cryptography.fernet import Fernet; print(Fernet.generate_key().decode())"
+# Secret key used to encrypt node secrets at rest (optional). If unset, the node
+# generates one on first start, writes it to routstr_secret.key (override the path
+# with ROUTSTR_SECRET_KEY_FILE), and prints it once — back that file up, because
+# losing the key makes previously encrypted secrets unreadable. Set it explicitly
+# to manage the key yourself (recommended in production). Generate one with:
+#   uv run python -c "from cryptography.fernet import Fernet; print(Fernet.generate_key().decode())"
 ROUTSTR_SECRET_KEY=
 
 # The admin password and the Nostr identity (nsec) are NOT set here. The admin
diff --git a/README.md b/README.md
index 767bacae..023ccd18 100644
--- a/README.md
+++ b/README.md
@@ -55,7 +55,10 @@ If you are a node runner, start a Routstr Core instance using Docker Compose:
 
 1. **Prepare your `.env`**:
    ```bash
-   # Required: encrypts secrets at rest. The node won't start without it.
+   # Optional: encrypts node secrets at rest. If unset, the node generates a key
+   # on first start, writes it to routstr_secret.key, and prints it once — back
+   # up that file. Set it explicitly to manage the key yourself (recommended in
+   # production).
    ROUTSTR_SECRET_KEY=<generated-key>
    NAME="My AI Node"
    DESCRIPTION="Fast access to models"
@@ -63,10 +66,11 @@ If you are a node runner, start a Routstr Core instance using Docker Compose:
    RECEIVE_LN_ADDRESS=yourname@wallet.com
    ```
 
-   Generate `ROUTSTR_SECRET_KEY` once and keep it stable — changing it makes
-   previously encrypted secrets unreadable:
+   If you don't set one, a key is generated and printed on first start — save it
+   somewhere safe (losing it makes previously encrypted secrets unreadable). To
+   supply your own, generate it once and keep it stable:
    ```bash
-   python -c "from cryptography.fernet import Fernet; print(Fernet.generate_key().decode())"
+   uv run python -c "from cryptography.fernet import Fernet; print(Fernet.generate_key().decode())"
    ```
 
 2. **Start the services**:
@@ -80,7 +84,7 @@ If you are a node runner, start a Routstr Core instance using Docker Compose:
    ```bash
    docker compose logs routstr | grep -i admin
    ```
-   (Lost it? Reset with `python scripts/reset_admin_password.py --regenerate`.)
+   (Lost it? Reset with `docker compose exec routstr /.venv/bin/python scripts/reset_admin_password.py --regenerate`.)
 
 4. **Configure**:
    Open [http://localhost:8000/admin/](http://localhost:8000/admin/) to connect your AI providers and set pricing.
diff --git a/docs/provider/configuration.md b/docs/provider/configuration.md
index 40930676..f548c990 100644
--- a/docs/provider/configuration.md
+++ b/docs/provider/configuration.md
@@ -15,6 +15,11 @@ Before running your node, you should create a `.env` file in the project root. T
 ```bash
 ADMIN_PASSWORD=your-secure-password
 
+# Encrypts node secrets at rest. Optional — if unset, the node generates a key on
+# first start and prints it once (back it up). Set it to manage the key yourself
+# (recommended in production). See "Secrets at Rest" below.
+ROUTSTR_SECRET_KEY=
+
 # Node Identity
 NAME="My AI Node"
 DESCRIPTION="Fast access to models"
@@ -124,6 +129,8 @@ Use environment variables for:
 | `UPSTREAM_BASE_URL`  | Upstream API endpoint             | —                                    |
 | `UPSTREAM_API_KEY`   | Upstream API key                  | —                                    |
 | `ADMIN_PASSWORD`     | Dashboard password                | (none)                               |
+| `ROUTSTR_SECRET_KEY` | Master key encrypting node secrets at rest. Auto-generated to a key file if unset | (auto-generated) |
+| `ROUTSTR_SECRET_KEY_FILE` | Path to the generated key file (used when `ROUTSTR_SECRET_KEY` is unset) | `routstr_secret.key` beside the database |
 | `DATABASE_URL`       | Database connection string        | `sqlite+aiosqlite:///keys.db`        |
 | `NAME`               | Node display name                 | `ARoutstrNode`                       |
 | `DESCRIPTION`        | Node description                  | `A Routstr Node`                     |
@@ -142,6 +149,20 @@ Use environment variables for:
 
 Environment variables are read on startup. Dashboard settings override them and persist in the database. Once you change a setting in the dashboard, the env var is ignored for that setting.
 
+### Secrets at Rest
+
+The node's Nostr private key (`nsec`) is encrypted in the database using
+`ROUTSTR_SECRET_KEY`. You don't have to set it: if it's unset, the node generates a
+key on first start, writes it **beside the database** (the file named by
+`ROUTSTR_SECRET_KEY_FILE`, default `routstr_secret.key`) so it persists on the same
+volume as your data, and prints it once.
+
+**Back up that key** — it lives on the same volume as your database, so include it
+in your backups. If it is lost or changed, previously encrypted secrets can't be
+decrypted and must be re-entered — there is no rotation. To keep the key off the
+data volume, set `ROUTSTR_SECRET_KEY` explicitly (an env value always takes
+precedence over the file). See also [Deployment](deployment.md).
+
 ---
 
 ## Models
diff --git a/docs/provider/deployment.md b/docs/provider/deployment.md
index 5a3a2899..24c0591a 100644
--- a/docs/provider/deployment.md
+++ b/docs/provider/deployment.md
@@ -156,10 +156,21 @@ Example `.env`:
 UPSTREAM_BASE_URL=https://api.openai.com/v1
 UPSTREAM_API_KEY=sk-proj-...
 ADMIN_PASSWORD=change-me
+# Encrypts node secrets at rest. Optional — if unset, a key is generated next to
+# your database (on the same volume) and printed once. Set it explicitly to
+# manage the key yourself.
+ROUTSTR_SECRET_KEY=
 NAME=My Provider Node
 RECEIVE_LN_ADDRESS=me@walletofsatoshi.com
 ```
 
+!!! note "Secret key persistence"
+    If you leave `ROUTSTR_SECRET_KEY` unset, the node generates one and stores it
+    as `routstr_secret.key` **next to your database**, so it persists on the same
+    volume as your data — just include that volume in your backups. For stronger
+    isolation (keeping the key off the data volume), set `ROUTSTR_SECRET_KEY` from
+    a secrets manager instead.
+
 See [Configuration](configuration.md) for all available options.
 
 ---
diff --git a/docs/provider/quickstart.md b/docs/provider/quickstart.md
index 5b33c359..ef959f40 100644
--- a/docs/provider/quickstart.md
+++ b/docs/provider/quickstart.md
@@ -32,6 +32,10 @@ Create a `.env` file in the root of the project to store your secrets:
 # Initial Admin Password
 ADMIN_PASSWORD=mysecretpassword
 
+# Encrypts node secrets at rest. Optional — if unset, the node generates a key on
+# first start and prints it once (back it up).
+ROUTSTR_SECRET_KEY=
+
 # Node Identity
 NAME="My AI Node"
 DESCRIPTION="Fast access to models"